Europe Biodegradable Plastics Market

Europe Bio-Degradable Plastic Market Size

The Europe bio-degradable plastic market size was valued at USD 1.39 billion in 2024. The European market size is estimated to be worth USD 3.53 billion by 2033 from USD 1.54 billion in 2025, growing at a CAGR of 10.93% from 2025 to 2033.

Bio-degradable plastic is part of polymer materials designed to decompose under natural environmental conditions, primarily through microbial action, within a defined timeframe. These plastics are derived from renewable biomass sources such as corn starch, sugarcane, or vegetable fats, as opposed to conventional petroleum-based polymers. The European market has evolved significantly in response to mounting ecological concerns and stringent regulatory frameworks aimed at reducing plastic waste accumulation, particularly in marine and terrestrial ecosystems. 

This growing waste challenge has accelerated the shift toward sustainable alternatives, including bio-based and compostable polymers. As per European Bioplastics, in 2023, Europe accounted for about 25% of global bioplastics production capacity, with Germany leading the region in both production and consumption of bio-degradable plastics. Furthermore, policy initiatives such as the EU’s Single-Use Plastics Directive have banned certain disposable products like straws and cutlery made from traditional plastics, thereby creating space for bio-degradable substitutes. In addition to legislative support, consumer awareness regarding environmental degradation has surged. A survey conducted revealed that a large majority of EU citizens consider plastic pollution a critical issue, influencing purchasing behavior toward eco-friendly packaging.  

MARKET DRIVERS

Regulatory Push Toward Circular Economy Models 

One of the most significant drivers of the Europe bio-degradable plastic market is the increasing emphasis on transitioning to circular economy models. Governments across the continent are actively promoting resource efficiency, waste reduction, and sustainable production practices. The European Union’s Circular Economy Action Plan, adopted in 2020, outlines comprehensive strategies for making all packaging recyclable or reusable by 2030, which inherently supports the growth of bio-degradable alternatives. Additionally, the EU Packaging Waste Directive mandates that member states achieve a recycling target of 65% for packaging waste by 2025, further incentivizing industries to adopt compostable and bio-based materials. In France, for instance, a national law enacted in 2023 prohibited non-compostable fruit and vegetable packaging in supermarkets, directly boosting demand for bio-degradable films. Moreover, financial incentives and grants are being extended to companies developing innovative bio-plastic solutions. According to market intelligence firm Smithers, investment in compostable packaging technologies in Europe significantly grew between 2020 and 2023.  

Rising Consumer Demand for Eco-Friendly Packaging Solutions 

Consumer behavior across Europe is undergoing a paradigm shift, driven by heightened environmental consciousness and a preference for sustainable products. This behavioral trend is especially pronounced among younger demographics, notably Gen Z and millennials, who prioritize environmental responsibility in their consumption patterns. Besides, major retail and food service brands are responding to this demand by replacing conventional plastics with bio-degradable alternatives. For instance, in 2022, UK-based supermarket chain Tesco committed to making all its own-brand packaging reusable, recyclable, or compostable by 2025. Similarly, McDonald's Europe announced plans to phase out single-use plastics by introducing compostable cutlery and fiber-based containers. Coupled with the rise of e-commerce and increased online food delivery services, which necessitate single-use packaging, the demand for sustainable alternatives is expected to surge even further.  

MARKET RESTRAINTS

High Production Costs Compared to Conventional Plastics 

Despite growing demand, one of the primary restraints facing the Europe bio-degradable plastic market is the relatively high cost of production compared to traditional petroleum-based plastics. This cost differential arises due to higher raw material prices, less mature supply chains, and lower economies of scale in bio-plastic production. These elevated costs pose a significant barrier, especially for small and medium-sized enterprises (SMEs) that may lack the financial flexibility to absorb premium pricing. As reported by the European Chemical Industry Council (CEFIC), only a small share of SME manufacturers had fully integrated bio-degradable plastic packaging into their operations by early 2024. Moreover, despite regulatory pressure and consumer sentiment favoring sustainable options, many businesses remain hesitant to adopt these materials without clear economic incentives or subsidies. Furthermore, price sensitivity remains a dominant factor across several end-use sectors, particularly in the food and beverage packaging industry, where margins are often narrow.  

Limited Composting Infrastructure and End-of-Life Management 

A critical limitation impeding the growth of the Europe bio-degradable plastic market is the insufficient composting infrastructure necessary for proper end-of-life management of these materials. While bio-degradable plastics are designed to decompose under specific industrial composting conditions, a significant portion of European municipalities still lacks the appropriate facilities to process them effectively. This infrastructural deficit results in bio-degradable plastics often ending up in general waste streams, where they fail to break down efficiently and instead contribute to landfill waste or contamination in recycling systems. The European Environment Agency estimated that in 2022, less than 12% of bio-plastic waste was properly composted, while over 60% was either incinerated or sent to landfill. Such inefficiencies undermine the intended environmental benefits of using bio-degradable plastics and discourage their uptake among stakeholders who rely on reliable disposal pathways. In addition, inconsistent labeling and consumer confusion exacerbate the problem. Without synchronized improvements in waste collection and processing capabilities, the full potential of bio-degradable plastics in the European market will remain constrained. 

MARKET OPPORTUNITIES

Expansion of Bio-Based Feedstock Sourcing Across Europe 

A significant opportunity for the Europe bio-degradable plastic market lies in the expansion of local and sustainable bio-based feedstock sourcing. Currently, much of the raw material used in bio-plastic production—such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA)—is imported, contributing to higher production costs and longer supply chains. However, with the increasing availability of agricultural residues, non-food crops, and organic waste, European producers have a growing opportunity to localize feedstock procurement and reduce dependency on external suppliers. Utilizing these abundant resources can significantly enhance the feasibility of domestic bio-plastic manufacturing. For instance, Italy has begun investing in second-generation biorefineries that convert agro-industrial by-products like wheat straw and rice husks into fermentable sugars for PLA and PHA production. Moreover, the European Union’s Renewable Energy Directive (RED III) encourages the use of non-food biomass for industrial applications, aligning with broader sustainability goals. With strategic investments in regional biomass processing facilities and supportive policy frameworks, Europe is well-positioned to establish a self-sufficient and economically advantageous bio-plastic ecosystem. 

Technological Advancements in Polymer Modification and Processing 

Technological innovation presents a crucial growth avenue for the Europe bio-degradable plastic market. Recent developments in polymer science have led to enhanced performance characteristics, enabling bio-degradable plastics to compete more effectively with conventional polymers in terms of durability, thermal resistance, and barrier properties. As per the Fraunhofer Institute for Environmental, Safety, and Energy Technology (UMSICHT), the introduction of nanotechnology-based additives and blending techniques has improved the mechanical strength of bio-plastics, broadening their applicability beyond traditional packaging into sectors such as automotive, electronics, and medical devices. For example, German company FKuR launched a line of bio-based thermoplastic elastomers in 2023 that offer flexibility and heat resistance comparable to synthetic rubbers, opening new markets in the automotive industry. Similarly, French biotech firm Carbios successfully commercialized an enzymatic recycling process for PET, demonstrating how biological engineering can extend the lifecycle of bio-plastics and improve circularity. In addition, the rise of digital twin technology is streamlining R&D processes for bio-plastic developers.  

MARKET CHALLENGES

Standardization and Certification Complexities Across EU Markets 

One of the foremost challenges facing the Europe bio-degradable plastic market is the lack of uniform standardization and certification protocols across EU member states. Although there are established guidelines such as EN 13432 for industrial compostability, the implementation and enforcement of these standards vary significantly from country to country. This inconsistency leads to confusion among manufacturers, retailers, and consumers regarding what qualifies as truly bio-degradable or compostable. For instance, Austria mandates strict adherence to TÜV-certified compostability labels, while Spain allows multiple national and international certifications to coexist, creating a fragmented regulatory landscape. Also, this divergence increases compliance costs for producers seeking to operate pan-European distribution networks, thereby slowing down market expansion. Apart from these, misleading marketing claims—often referred to as "greenwashing"—are prevalent due to unclear labelling norms.  

Performance Limitations in High-Demand Applications 

Despite advancements, bio-degradable plastics still face performance limitations that restrict their adoption in high-performance or technically demanding applications. Traditional polymers such as polyethylene terephthalate (PET) and polypropylene (PP) offer superior mechanical strength, moisture resistance, and thermal stability, which are essential for certain industrial and consumer goods sectors. This constraint is particularly evident in the food packaging industry, where temperature-sensitive perishables require materials that can withstand refrigeration, freezing, or microwave heating without degradation. A 2024 study by the European Food Safety Authority (EFSA) noted that some bio-plastic films showed a decrease in structural integrity after exposure to temperatures above 70°C, limiting their suitability for hot-fill or retort packaging applications. Apart from these, oxygen and moisture permeability issues affect shelf life and preservation capabilities, posing concerns for long-term storage solutions. While ongoing research into polymer blending and additive formulations is helping bridge this performance gap, widespread adoption in critical sectors remains challenging. Companies operating in pharmaceuticals, aerospace, and high-end electronics—where material reliability is paramount—continue to favor conventional plastics until equivalent bio-degradable alternatives become commercially viable.  

REPORT COVERAGE

SEGMENT ANALYSIS

By Product Type Insights 

The polylactic Acid (PLA) had the largest market share. This dominance is primarily attributed to its widespread use in packaging and disposable consumer goods, where sustainability and compostability are key priorities. One of the leading drivers behind PLA’s market leadership is its high availability of feedstock , particularly corn and sugarcane-based starches, which are increasingly cultivated in agricultural hubs across France, Germany, and Poland. In addition, companies such as TotalEnergies Corbion have expanded their PLA manufacturing capacities in the Netherlands, further boosting regional supply chains. Another major factor driving PLA's dominance is its favorable regulatory treatment under EU bio-plastic certification frameworks. The European Bioplastics Association noted that over 60% of certified compostable packaging products launched in 2023 were based on PLA due to its compatibility with EN 13432 standards for industrial composting. Furthermore, consumer-facing brands like Nestlé and Unilever have actively integrated PLA into food-grade packaging solutions, contributing to a surge in demand.  

The fastest-growing segment in the Europe bio-degradable plastic market is Polyhydroxyalkanoates (PHA), exhibiting a CAGR of 19.3%. PHA’s rapid expansion is driven by its unique properties, including marine biodegradability and adaptability to diverse environmental conditions, making it highly attractive for niche and high-value applications. One key driver of PHA growth is advancements in microbial fermentation technology, which has significantly improved production efficiency and cost competitiveness. A report by the Fraunhofer Institute indicated that optimized bacterial strains and waste-based feedstocks—such as glycerol from biodiesel production—have reduced PHA production costs compared to earlier methods. Companies like Kaneka and Danone are investing heavily in scaling up PHA production, particularly in Belgium and Germany, where industrial fermentation capabilities are well-established. Another significant factor propelling PHA adoption is increasing interest from the medical and pharmaceutical sectors. Also, growing concerns about microplastics in aquatic environments have prompted regulatory bodies such as the European Chemicals Agency (ECHA) to recommend PHA as an alternative for single-use water-contact products.  

By End Use Industry Insights 

The Food industry is the largest end-use sector for bio-degradable plastics in Europe, capturing around 37% of total market demand as reported by Grand View Research in 2023. This control over the market is because of the sector’s extensive reliance on single-use packaging materials, which are increasingly being replaced by compostable alternatives to align with evolving sustainability mandates and consumer expectations. A primary driver of this trend is the EU Single-Use Plastics Directive, which came into full effect in 2021 and banned several disposable plastic items used in food service, including cutlery, plates, and straws. In response, major fast-food chains such as McDonald's and Burger King have transitioned to PLA-based containers and PHA-lined paper cups, significantly boosting polymer demand. Additionally, the expansion of e-commerce and food delivery services has intensified the need for sustainable packaging.  

The Pharmaceuticals segment is coming out as the quickest-rising application area in the Europe bio-degradable plastic market, registering a CAGR of 17.6%. This rapid growth is largely fueled by the healthcare industry’s increasing emphasis on reducing environmental footprints while maintaining stringent hygiene and safety standards. One key driver is the rising demand for biocompatible and implantable materials in medical devices and drug delivery systems. These materials are especially prevalent in sutures, bone fixation devices, and controlled-release drug capsules. Another contributing factor is the regulatory push toward sustainable healthcare practices. The European Commission’s Green Deal initiative includes specific provisions for reducing hospital waste, prompting hospitals and pharmaceutical firms to adopt compostable blister packs, tablet coatings, and disposable lab equipment made from bio-plastics. Apart from these, the European Pharmacopoeia updated its guidelines in 2024 to include standardized testing procedures for bio-plastic-based pharmaceutical packaging, enhancing market confidence and accelerating adoption.  

REGIONAL ANALYSIS

Germany stood at the forefront of the European bio-degradable plastic market by holding a dominant market share of 22.4% in 2024. The country maintains a robust ecosystem for sustainable polymer development, supported by a combination of strong industrial demand, advanced R&D infrastructure, and proactive government policies. A major driving force behind Germany’s prowess is its well-developed recycling and composting infrastructure, which facilitates the proper disposal of bio-degradable materials. Additionally, the country hosts some of the largest biopolymer producers in Europe, including BASF and FKuR, both of which have significantly expanded their bio-plastic production capacities in recent years. Furthermore, Germany benefits from strong regulatory support, particularly through the Circular Economy Act (KrWG), which mandates increased use of recyclable and compostable materials in packaging.  

France has emerged as a key player due to its aggressive policy interventions and growing domestic manufacturing capacity for sustainable polymers. One of the primary catalysts for growth in France is the implementation of the Anti-Waste Law for a Circular Economy, enacted in 2023. This legislation prohibits the use of non-compostable plastic packaging for fresh produce in supermarkets, directly boosting the adoption of starch-based and PLA films. Besides, France has seen a surge in domestic investment in biorefineries and bio-polymer production facilities.  

Italy contributes significantly to the Europe bio-degradable plastic market. The country’s strategic location and strong agro-industrial base provide a favorable environment for bio-plastic production and consumption. A critical factor driving Italy’s prominence is its advanced composting infrastructure, which is among the most developed in Europe. This infrastructure ensures efficient end-of-life management of compostable plastics, thereby encouraging broader adoption across retail and foodservice sectors. Moreover, Italy has been at the forefront of bio-plastic innovation, particularly in the field of starch-based polymers. Novamont, a leading Italian biopolymer company, expanded its Mater-Bi production lines to meet rising domestic and export demand, with annual output surpassing 150,000 tons in 2023.  

Spain represents a growing presence in the Europe bio-degradable plastic market. While not among the top three contributors, Spain has demonstrated consistent progress in integrating bio-based materials across various industries. One of the key drivers of Spain’s market growth is the expanding agrifood sector, which accounts for a significant portion of national economic output and drives demand for sustainable packaging. This has led to increased adoption of bio-degradable films and trays, particularly in fruit and vegetable exports. Besides, regional government incentives have played a crucial role in promoting bio-plastic adoption. Catalonia and Andalusia, in particular, have introduced tax breaks and grants for companies developing bio-based materials. These initiatives, coupled with rising consumer awareness and regulatory alignment with EU directives, position Spain as a steadily growing contributor to the European bio-degradable plastic market. 

The Netherlands holds a prominent position in the Europe bio-degradable plastic market. The country serves as a strategic hub for sustainable polymer innovation and distribution, leveraging its strong logistics infrastructure and progressive environmental policies. A major driver behind the Netherlands’ market strength is its status as a leading gateway for bio-plastic imports and exports within Europe. Additionally, the Dutch government has actively supported the bio-economy through initiatives such as the “Green Chemistry Program,”. Another significant factor is the concentration of multinational corporations headquartered or operating in the country, many of which have pledged to adopt sustainable packaging. Companies like Unilever and DSM have ramped up their use of bio-degradable materials in product lines manufactured from the Netherlands 

KEY MARKET PLAYERS AND COMPETITIVE LANDSCAPE

API SpA, BASF SE, Biome Bioplastics (Biome Technologies plc), FKuR Kunstatoff GmbH, Kingfa Sci. & Tech. Co., Ltd, Mitsubishi Chemical Corporation, Natureworks LLC (Cargill Incorporated), Novamont S.p.A, Plantic (Kuraray Co., Ltd) and Toray Industries Inc. are the key players in the Europe bio-degradable plastic market.

The competition in the Europe bio-degradable plastic market is characterized by a dynamic mix of established chemical giants, innovative startups, and specialized biopolymer manufacturers. As environmental concerns intensify and regulatory pressures mount, companies are increasingly differentiating themselves through product innovation, strategic collaborations, and localized production capabilities. The market landscape features both global players expanding their footprint in the region and domestic firms leveraging local knowledge to strengthen their positions. With sustainability becoming a core business imperative, competitive strategies now revolve around enhancing material performance, improving end-of-life management, and ensuring compliance with evolving standards. Additionally, consumer-facing brands are exerting pressure on suppliers to adopt eco-friendly packaging, further fueling competition. This environment fosters continuous technological advancements and investment in scalable solutions, shaping a rapidly evolving and highly contested market space. 

TOP PLAYERS IN THIS MARKET 

BASF SE

One of the leading players in the Europe bio-degradable plastic market is BASF SE, a German multinational chemical company. BASF has been instrumental in developing high-performance biodegradable polymers such as ecovio®, which combines biodegradability with mechanical strength. The company actively collaborates with industry stakeholders to promote compostable packaging solutions and supports policy initiatives aimed at reducing plastic waste across Europe. 

TotalEnergies Corbion

Another key player is TotalEnergies Corbion, a joint venture between TotalEnergies and Corbion, specializing in polylactic acid (PLA) production. The company plays a vital role in scaling up PLA manufacturing in Europe, particularly in the Netherlands, where it operates one of the largest PLA production facilities on the continent. Its focus on sustainable lactic acid fermentation aligns with the growing demand for renewable feedstock-based plastics. 

Novamont S.p.A.

Novamont S.p.A., an Italian company, stands out for its pioneering work in starch-based biopolymers and compostable materials. Known for its proprietary Mater-Bi® technology, Novamont supplies bioplastics to packaging, agriculture, and disposable goods sectors. The company also integrates circular economy principles by utilizing agro-industrial by-products in its formulations, reinforcing its leadership position in the European market. 

TOP STRATEGIES USED BY THE KEY MARKET PLAYERS

One major strategy employed by key players in the Europe bio-degradable plastic market is product innovation through advanced polymer research. Companies are investing heavily in R&D to enhance material properties such as durability, heat resistance, and barrier performance, enabling broader application beyond conventional packaging into industries like automotive and electronics. 

Another critical approach is strategic partnerships and collaborations with regulatory bodies, research institutions, and downstream industries. These alliances help streamline certification processes, influence policy frameworks, and ensure alignment with sustainability goals while accelerating commercial adoption of bio-degradable alternatives. 

Lastly, expansion of production capacities and localized supply chains is a prevalent tactic among leading firms. By establishing new manufacturing units within Europe, companies aim to reduce dependency on imports, lower costs, and meet the rising regional demand efficiently. 

RECENT HAPPENINGS IN THE MARKET

• In February 2024, BASF announced the expansion of its ecovio® production line at its Ludwigshafen facility to meet rising demand from the food packaging sector. The move strengthens its capacity to supply certified compostable materials across Western Europe. 
• In June 2023, TotalEnergies Corbion launched a new PLA compounding unit in the Netherlands, aimed at supporting local converters and brand owners seeking sustainable alternatives to petroleum-based plastics. 
• In November 2023, Novamont entered into a strategic partnership with an Italian retail chain to replace all private-label plastic bags with Mater-Bi®-based alternatives, reinforcing its presence in the consumer packaging segment. 
• In January 2024, FKuR introduced a new line of bio-based thermoplastic elastomers tailored for the automotive industry, marking a significant step toward diversifying its product portfolio beyond traditional packaging applications. 
• In September 2023, Carbios inaugurated its first enzymatic recycling pilot plant in France, setting a precedent for circular bio-plastic solutions and positioning itself as a leader in next-generation polymer technolo 

MARKET SEGMENTATION

This research report on the Europe Bio-Degradable Plastic market is segmented and sub-segmented into the following categories.

By Product Type

• PBAT
• Bio-Degradable Polyesters
• PBS
• PHA
• PLA
• Starch Based
• Others

By End Use Industry

• Food
• Beverage
• Pharmaceuticals
• Personal Care and Home Care
• Others

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe